Vistaprint 2006 Annual Report Download - page 64

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Table of Contents VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2006, 2005 and 2004
(in thousands, except share and per share data)
and corporate bonds with original maturities of three months or less at the date of purchase. Marketable securities consist primarily of
asset−backed securities, investment−grade corporate bonds, U.S. government agency issues and municipal auction rate securities.
Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation
at each balance sheet date. Marketable securities at June 30, 2006 are classified as “available−for−sale.” Available−for−sale securities are carried
at fair value, with the unrealized gains and losses reported in a separate component of accumulated other comprehensive income (loss) in
shareholders’ equity (deficit) in the accompanying balance sheets. The cost of debt securities that are deemed available−for−sale securities is
adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in other income
(expense) in the accompanying consolidated statements of operations. Realized gains and losses and declines in value judged to be
other−than−temporary on available−for−sale securities and other investments are included in other income (expense) in the accompanying
consolidated statements of operations. The cost of securities sold is based on the specific identification method. Interest and dividends on
securities classified as available−for−sale are included in other income (expense) in the accompanying consolidated statements of operations.
Cash, cash equivalents and marketable securities consist of the following (in thousands):
June 30,
2006 2005
Cash and cash equivalents $ 64,653 $ 26,402
Marketable securities:
Asset−backed securities 499 —
Commercial paper 1,596
Corporate bonds 10,735 —
Certificates of Deposit 2,000
U.S. government agency issues 7,449 —
Municipal auction rate securities 21,195 —
Total Marketable securities 43,474 —
Total cash, cash equivalents and marketable securities $108,127 $ 26,402
We have not experienced any realized gains or losses on our investments in the periods presented. Gross unrealized losses at June 30,
2006 and 2005 were $52 and $0, respectively.
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